Pi Coin price encounters resistance at $0.29 after rising 32%

After several months of stagnation, Pi Coin has begun to show strong signs of revival. The price of Pi Coin increased nearly 32% over the past week, marking the best increase in many months. This upward momentum is leading many investors to hope for a larger breakout cycle. However, some technical indicators still warn that the current upward trend may not be truly solid if the price does not surpass the important resistance level.

The silent movements in the market reveal a deeper story: trust is gradually being rebuilt, and the next breakout could determine the direction of Pi Coin in the coming weeks.

Silent trust forms around the price increase of Pi Coin

The driving force behind Pi Coin comes not only from short-term speculation but also from various groups of investors in the market.

The Smart Money Flow Index (SMI), which tracks the activities of institutional wallets or investors with a history of effective trading, has surged since October 25. Notably, the SMI has just crossed above the signal line for the first time in several weeks, reflecting that large investors are returning to the market after a long period on the sidelines of the downtrend.

Pi Coin has witnessed smart money flowing in | Source: TradingViewThe activity of “whales” also shows an increasingly clear optimism. The Chaikin Money Flow (CMF), which measures large money flows into the market, has just turned positive for the first time since mid-September. The last time CMF exceeded this threshold, Pi Coin experienced a brief surge before correcting. The return of CMF to the current positive zone indicates that whales are beginning to allocate capital into Pi Coin, rather than withdrawing it.

Large capital is flowing into PI | Source: TradingViewRetail investors are also in sync with this trend. The Money Flow Index (MFI), which combines price and trading volume to measure buying pressure, has continuously set new highs since October 12, reflecting a persistent accumulation process. When all three groups — smart money, whales, and retail investors — align, it is often a sign of a confident accumulation phase, preparing for a strong price movement.

Retail seems optimistic about the upward trend of Pi Coin | Source: TradingViewHowever, this confidence will soon face a crucial test.

Bearish wedge pattern: The decisive moment is approaching

On the daily chart, the price of Pi Coin remains within a descending wedge pattern — a pattern that often signals the potential for a bullish reversal in the future. In the trading session on October 27, the price tested the upper boundary of the wedge at $0.29 but was pushed back by selling pressure. Nevertheless, buyers quickly regained their position, keeping the bullish structure of Pi Coin intact.

If Pi Coin can break out and close above $0.29, this will be a confirmation signal for a new bullish trend, opening up opportunities towards the levels of $0.32, even $0.37. However, the first barrier for a prolonged growth cycle remains the resistance area of $0.28 — a level that has been identified in previous forecasts as the most important resistance.

A strong breakout through this area can create a noticeable shift in market sentiment, leaning heavily towards the buying side.

Nevertheless, the risks have not completely disappeared. From August 9 to October 29, the price of Pi Coin continuously set lower highs while the RSI index — a tool for measuring buying and selling strength — created higher highs. This divergence, known as hidden bearish divergence, often signals that the downtrend still has potential to continue.

Pi Coin price analysis | Source: TradingViewIn the past three months, Pi Coin has decreased by up to 36.8%, causing the overall trend to remain bearish. If the price falls below $0.20, the entire bullish scenario will be invalidated, potentially pulling Pi Coin down to lower price ranges like $0.18 or $0.15.

Mr. Teacher